European Green Transition CFO: Drax deal renewal locks in wind services revenue through to 2031

critically gives us uh revenue and and financial visibility um across a large um portion of our of our uh turbines um out as far as 2031.

Hello, you're watching Proactive. I'm joined by Jack Kelly, the Chief Financial officer at European Green Transition. Uh Jack, very good to speak with you.

EGT's renewed an important five-year operations and maintenance contract. Can you tell us more about the agreement and what it means for the business?

Yeah, thanks Stephen. look, great news this morning. Um EGT has renewed um a contract with uh on 94 onshore uh wind turbines with with the Drax group. Um so this this is a a a long-term customer um of our wind services business and it's it's really great to extend that uh um contract for a further five years. this, you know, critically gives us uh revenue and and financial visibility um across a large um portion of our of our uh turbines um out as far as 2031.

And then also from a a service and and confidence perspective, it's it's really encouraging um to see a large institutional uh customer um to uh extend uh their their their agreement with us for a further five years and really is an endorsement of of the service that we offer um to our customers.

This is a big technically varied fleet of turbines. What does that tell shareholders about what EGT can actually deliver, Jack?

Yeah, exactly. So across the 94 uh turbines, there's a mix of endurance uh turbines, W uh T-Ns uh and and and and Vesta's turbines. So I think the the the sort of two ways really of looking at this that, you know, it it is it showcases and the engineering capabilities across our um team. Um you know, we're incorporating uh all our own businesses across the wind services platform within this, so Earthmill uh in in in Great Britain, and then um wind energy partners and and Silverford on on on the island of Ireland. Um so it shows that there is uh, you know, the engineering capabilities to take on a diversified fleet uh of of of turbines um within our business.

And then from a second uh perspective, um sort of geographically, um you know, this is quite a uh uh well distributed uh portfolio uh of of of turbines and and given the footprint we have with uh service teams uh in in in the southwest, in in in Cornwall, uh in Wales, uh across Yorkshire and and and and the Midlands, uh Scotland and then across the island of Ireland. I think that puts us in a strong competitive position to deal with large institutional level uh uh customers and asset owners.

Jack, why is maintaining wind wind turbines such a good growth market for EGT to be in? and how does it support your wider growth strategy?

Yeah, look absolutely. um you know, I think when we when we look at what we're trying to build with EGT, it's really focusing on um uh you know, into critical industries, into critical infrastructure and and and into, you know, renewable uh assets. Look we're we're targeting long-term uh contracts with, you know, clear revenue visibility. And this this this extension of this of this um existing agreement really ticks a lot of those boxes for us, um with a with a large institutional client across a large uh uh base of assets. and it really sort of fits in in in with the key uh growth drivers we have in in in our business towards hitting our 50 million um revenue target.

I think additionally, you know, it also it fits in well with with with a key growth opportunity we see in targeting the, you know, sub 1 megawatt uh wind turbines or wind farms that are coming off their legacy OEM or manufacturer service warranties. There's a key growth area um of of of our business to get into those um customers where we see a huge market opportunity across the UK and Ireland. and and and this extension today with with with the Drax group, um we think will will definitely support us um in continuing to target that area.

Jack, I hope you continue to keep us updated with your progress. Thank you for your time today.

Thanks, Stephen.

That's Jack Kelly, CFO at European Green Transition.